KOÇ PENSION AND SUPPORT FUND FOUNDATION INFORMATIVE PRESENTATION

KOÇ PENSION AND SUPPORT FUND KOÇ PENSION AND SUPPORT FUND FOUNDATIONFOUNDATION

TABLE OF CONTENTS:

1. THE PURPOSE OF THE KOÇ FOUNDATION

2. HOW TO BECOME A FOUNDATION MEMBER2.1 Faculty2.2 Staff

3. WHAT IS THE AMOUNT OF THE PREMIUM PAID FROM MY SALARY?

4. BENEFITS AND SERVICES PROVIDED TO MEMBERS 4.1. Lump Payment / Retirement Pension

4.2. Health Insurance4.3. Funding Support

4.3.1. Acquiring a home4.3.2. Financial support for meeting certain needs

4.4. Occupational Indemnity4.4.1. Disability Benefit4.4.2. Death Benefit

5. TERMINATION OF THE MEMBERSHIP

6. HOW CAN I GET INFORMATION ABOUT MY ACCUMULATION?

1. WHAT IS THE PURPOSE OF KOÇ FOUNDATION?1. WHAT IS THE PURPOSE OF KOÇ FOUNDATION?

Founded on November 1, 1967, the Koç Holding Pension and Support Fund

Foundation is a corporate pension plan that provides “additional social security and

financial support”, a fund available to all Koç Group employees who are also

beneficiaries of the official Turkish Social Insurance Institution (SGK).

2. HOW TO BECOME A FOUNDATION MEMBER2. HOW TO BECOME A FOUNDATION MEMBER

2.1. Conditions For Faculty Members: To be a full-time faculty member For full-time faculty members with annual contract renewals the membership begins

after 1 year of appointment Maximum age for membership is 55.

The membership for faculty members is arbitrary.

If you are willing to become a member of Koç Foundation and meet the above mentioned conditions, please contact the Office of Human Resources for membership.

2.2. Conditions For Staff Members: To be a full-time member of Koç University Maximum age for membership is 55.

The membership is only arbitrary for staff above the age of 35 years. The membership begins with the employment date.

3. WHAT IS THE AMOUNT OF THE PREMIUM PAID 3. WHAT IS THE AMOUNT OF THE PREMIUM PAID FROM MY SALARY?FROM MY SALARY?

AGE

MEMBERSHIP INTEREST

SHARE

COMPANY INTEREST

SHARETotal

Deduction(%)Total

Deduction(%)

18 - 55 6,0 6,0

Table 1. Interest shares from the member and from the university

Your share is calculated from the %75 of your monthly gross salary.

The upper limit of monthly ceiling is 7.200 TL for 2013. Therefore, if %75 of your monthly gross salary is over 7.200 TL your foundation deduction will be calculated by 7.200 TL

Koç University also contributes an equal premium on the employee’s behalf.

At the beginning of your membership there is an extra one time deduction .

Sample: Monthly Contribution of Members and University

Age Gross Salary

%75 of Gross Salary

Salary For Calculation Rate Member

ContributionUniversity

Contribution

18-40 10,000 7,500 7,200 6.0% 432 432

18-40 5,000 3,750 3,750 6.0% 225 225

Table 2. Monthly Contribution of Members and University

4. BENEFITS AND SERVICES PROVIDED TO 4. BENEFITS AND SERVICES PROVIDED TO MEMBERSMEMBERS

4.1. Lump Payment / Employee Pension:

At the end of your membership you can choose between a lump payment

or an employee pension if you fulfill all conditions for retirement.

Male Members who completed his 55 years and have at least 180 month Koc

Foundation Membership Seniority and female members who completed her 50 years

and 180 month Koc Foundation Membership Seniority can prefer employee pension

instead of lump payment when they quit employment

4.1.1. Lump PaymentYou will receive your contribution regardless of your seniority, however the university's

contribution is dependent on the employment period

EMPLOYMENT YOUR CONTRIBUTION CONTRIBUTION OF THE UNIVERSITY

0 – 11 MonthsYou receive complete premium from

your salary without interest-fee-


your salary with interest-


your salary with interest%30 of university's contribution with interest

60 – 119 Months You receive complete premium from




* 180 – 239 MonthsYou receive complete premium from




300 Months and OverYou receive complete premium from


Table 3. Reimbursement ratios based on employment period

*If you are working over 180 monthsandyouareeligibleforretirementaccordingtothelawNr.81concerningtheSocialSecurityInstitution,youget%100oftheuniversity’scontribution.

Sample: How is the net amount of my accumulation being calculated?

LUMP PAYMENT CALCULATION

NAMESURNAME KUZEYÇINAR TOTAL GROSS ACCUMULATION 200.000,00 200,000.00EXEMPTFROMTAXES 84.151,29

SUBJECTOFTAX 115.848,71TAXDEDUCTION 31.257,05

NET LUMP PAYMENT 168.742,95INCOME TAX CALCULATION TAX

BRACKET

TAX RATIO

Tax AssesmentIncome

Tax (GVK 103.md)

Firstbracket 10.000,00 TL.için %15 10.000,00 1.500,00Followingbracket 25.000,00 TL.için %20 15.000,00 3.000,00Followingbracket 88.000,00 TL.için %27 63.000,00 17.010,00Followingbracket Over %35 27.848,71 9.747,05IncomeTaxAmount 115.848,71 31.257,05

If you have an accumulation of gross 200.000 TL at Koç Foundation, the net amount

you will get is a value of 168,742,95 TL. after income tax deduction.

4.1.2. Employee Pension By the end of membership, employees who meet the conditions for retirement are eligible for

employee pension.

Conditions for getting an employee pension: Seniority should be at least 180 months, Men should be at least 55 years old, Women should be at least 50 years old

NAMESURNAME: KUZEYÇINAR(MALE)

RETIREMENT DATE: 01.01.2012

SENIORITY(MONTH): 180

DATEOFBİRTH: 01.12.1956

AGE 55 Year 1 Month

Sample: How much employee pension do I get if I choose employee pension?

REMAININGTIMETOTHELUMPPAYMENT’SDEPLETION(MONTH) 240

TotalGrossLumpPayment 200.000,00

If you have an accumulation of 200,000,00 TL at Koç Foundation, you will get 703 TL pension for the following 240 months.

2011 MONTHLY GROSS EMPLOYEEE PENSION INSURANCE PREMIUM (MEMBER+SPOUSE)MONTHLY NET EMPLOYEE PENSION

833,00TL.-130,00TL.703,00TL.

4.2 Health Insurance

To be covered by the Koç Foundation Health Insurance you must be a member of

Koç Pension and Support Fund Foundation. Compared with other health insurance coverage within the university, what are the

advantages of Koç Foundation Health Insurance?

Fewer cases of exemptions

Covers cesarean section and normal delivery up to amounts specified in the policy

Member’s spouse and children can be covered by health insurance at low premium rates but their premiums will be paid by member . Children should be below the age of 24 and unmarried.

Other Conditions:

Member’s spouse and children can not be covered by health insurance if member is not covered by health insurance.

Retired members who prefer retirement pension in order to lump payment may sustain health insurance after retirement.

What are the Insurance Coverages? BENEFITS I. SENIORITY II. SENIORITY

( 121 - 240 MONTHS ) III. SENIORITY

( 01 -120 MONTHS )PAYMENT RATE % ( 241 + MONTHS )

Outpatient Treatment Unlimited 2.150,00 1.750,00 25%Advanced Diagnostic Methods and Medical Observation Treatment Unlimited 6.300,00 5.500,00 25%Minor Surgery Unlimited 3.650,00 3.350,00 25%Control Mammography ( Over 40 years for women )

Once a year Once a year Once a year

N/APSA ( Prostate Specific Antigen ) ( Over 40 years for men )

Once a year Once a year Once a year

N/ABone Density Test ( Over 40 years for women )

Once a year Once a year Once a year N/A

In-Patient Treatment Unlimited 48.000,00 38.000,00 N/AHome Care 8 weeks 8 weeks 8 weeks N/AAmbulance Unlimited 2.900,00 2.900,00 N/AChemotherapy/Radiotherapy/Dialysis Unlimited 19.000,00 13.000,00 25%Chemotherapy/Radiotherapy/Dialysis Control ** ** Unlimited 25%Artificial Organ 24.000,00 19.000,00 12.000,00 N/AMedical Equipment 1.500,00 850 580 25%Post - Operation Physiotherapy * 20 Seance 20 Seance 20 Seance N/ANormal Childbirth Unlimited 2.900,00 2.900,00 N/ACesarean Section Unlimited 5.300,00 5.300,00 20%Dental Care ( Accidental ) Unlimited N/A N/A N/AEye Glasses - Contact Lenses N/A N/A N/A N/A**: Expenses related to Chemotherapy/Radiotherapy/Dialysis Control are taken out from their yearly limit.

FOUNDATION MEMBER

SENIORITY

MEMBERS’MONTHLYCOST (TL)

MEMBERS’YEARLY

COST (TL)

1st Seniority Group Herself/Himself 72 864

241 months and + Spouse 72 864

Childeren 28,80 354,60

2st Seniority Group Herself/Himself 72 864Between 121-240

months Spouse 72 864 Childeren 28,80 354,60

3st Seniority Group Herself/Himself 72 864Between 37-120

months Spouse 72 864

Childeren 28,80 354,60 Between 1-36

monthsHerself/Himself 134 1608

Spouse 95 1140

Childeren 37 444Table 4. Insurance rates for spouse and children

4.3 Financial Aid

Duringyourmembershipyoucangetfinancialsupportforcertainneeds.4.3.1. Home Loan

Buyingresidentialhouse/apartment Buyingpropertythroughcooperative Constructiononland

4.3.2. Financial Aid Automobile Education Illness Marriage Durablegoods Naturaldisaster Monetary grant for economicalcrisisperiod Paidmilitaryservice

4.3.1. Home Loan

Conditions for getting Home Loan:

Not to own a house or a real estate which is in good condition (includes holdings of spouse and children)

Having completed 3 years of membership by the end of the previous year.

Have not benefited by home loan before.

Principles:

Home loan is provided once only.

Maximum pay-back time is 4 years.

The pay-back should be made in equal installments and should be monthly transferred from members salary to Foundations’ Account.

The member should apply within the 3 months after registration of the estate.

Both of married members can only get home loan in order to finance these loans for the same house. ( The name of both members should be declared in the deed)

4.3.2. Financial Aid

Conditions for getting Financial Aid:

Having completed 3 years of membership by the end of the previous year,

Not being indebted to the Koç Foundation

Education loan may be used once only for each child

Illness loan can only be used for the member himself, the member’s own spouse, her/his own children and own parents

Automobile loan It may only be used if the automobile is bought from companies who are also members of the Koç Foundation. Automobile loan may not be used for second hand cars.

Marriage loan can be used by both members in marriages among member. To benefit by this loan, marriage have to be certificated and need to be applied in written within two month after the marriage date.

Durable goods loan benefits finance to members who purchase durable goods from companies that are member of Foundation. Loan is paid to seller company in the name of member on condition of purchasing certificate.

Natural disaster loan benefits finance to members whose house and goods damaged because of earthquake, water flood, landslip avalanche

4.4.1 Disability Benefit

4.4 Occupational Indemnity

The member is entitled for disability benefit if she/he becomes incapable for work for any

reason (e.g. traffic accident, kidney failure, cancer, occupational accident).

The member should apply within one year after the incapability has occurred. Otherwise

right to indemnity will be lost.

The employer should also report the incapability to Koç Foundation.

The disability benefit will be determined according to the disability rate of the health

report. 4.4 2 Death Benefit

If a member dies for any reason(e.g. traffic accident, kidney failure, cancer,

occupational accident - except suicides happened within 2 years after employment),

legal successors will get a death benefit.

The death of the member should be reported to Koç Foundation within 1 week after

the occurrence.

55. TERMINATION OF THE MEMBERSHIPTERMINATION OF THE MEMBERSHIP

The membership of Koç Foundation will continue as long as the employment of the

member continues.

Following conditions are binding regarding the termination of membership:

The membership ends when employment relationship of the member ends.

Joining the army is also a reason for resignation.

In case of joining another Koç Group Company, the membership continues.

If the member is absent because of unpaid leave, the membership can be put on

hold.

6. HOW CAN I GET INFORMATION ABOUT 6. HOW CAN I GET INFORMATION ABOUT MY ACCUMULATION?MY ACCUMULATION?

For more information, please visit www.kocemekli.org.tr or www.kocemeklivakfi.org.tr

You need to have a VPN connection on your computer to log into the website. If you do not have a VPN connection, please contact CIT.

Thank you for your interest

http://www.kocemekli.org.tr/

http://www.kocemeklivakfi.org.tr/

Documents

KOÇ PENSION AND SUPPORT FUND FOUNDATION INFORMATIVE PRESENTATION